Several of Asia’s most important equity markets remained closed on Wednesday as the Lunar New Year (Spring Festival) holiday continued across the region, temporarily removing a major source of global liquidity and price discovery.
Mainland China and Hong Kong lead the shutdown
Onshore trading in China was suspended for the Spring Festival, keeping the Shanghai Stock Exchange closed for the day alongside its Shenzhen counterpart. At the same time, Hong Kong markets also remained shut, with the Hong Kong Stock Exchange observing the early days of the Lunar New Year break.
The holiday period is one of the most significant in the Asian financial calendar, reflecting nationwide travel, family gatherings and reduced business activity. For investors, it means that two of the region’s most influential trading hubs are temporarily offline, limiting visibility into China-linked sentiment and capital flows.
Singapore, Taiwan and Malaysia also on holiday
The shutdown extended beyond Greater China. The Singapore Exchange remained closed as the city-state marked Lunar New Year celebrations, while trading was also suspended at the Taiwan Stock Exchange as part of Taiwan’s extended holiday schedule.
In Southeast Asia, Bursa Malaysia was likewise closed for the festivities, further thinning regional volumes. With these markets offline simultaneously, a substantial portion of Asia’s equity infrastructure was effectively paused.
Open markets trade in thinner conditions
Elsewhere in Asia, exchanges that remained open — including Japan and Australia — traded under quieter-than-usual conditions, reflecting the absence of participation from China-related funds and regional institutional investors. Historically, Lunar New Year weeks tend to bring lower volumes and more muted price action, as portfolio managers wait for mainland and Hong Kong markets to reopen before making significant allocation decisions.
Offshore proxies, such as futures and select exchange-traded products, continued to provide limited insight into investor positioning, but without cash-market confirmation from Shanghai and Hong Kong, price signals remained incomplete.
Why the Lunar New Year matters for markets
The Spring Festival is not just a cultural milestone; it is also a structural feature of Asia’s financial system. Each year, the coordinated closures across China, Hong Kong and parts of Southeast Asia create a temporary gap in global market connectivity. During this period, developments in the United States and Europe often accumulate in the background, only to be absorbed once Asian markets resume trading.
That reopening phase is frequently associated with sharper moves, as investors adjust to several days’ worth of macro news, corporate developments and geopolitical headlines in a compressed timeframe.
Focus shifts to the reopening sessions
With mainland China set to remain closed for several more days and Hong Kong preparing to reopen sooner, traders are already looking ahead to the post-holiday sessions. Key areas of attention are expected to include technology stocks, property-related names and broader signals around China’s economic momentum.
For now, Asia’s Lunar New Year pause serves as a reminder of how closely global markets are tied to regional calendars — and how quickly sentiment can shift once the world’s second-largest economy comes back online.
Newshub Editorial in Asia – 18 February 2026
If you have an account with ChatGPT you get deeper explanations,
background and context related to what you are reading.
Open an account:
Open an account
Recent Comments